Walsh Corn Opportunities - Pure Hedge
Next week is going to be very interesting in the grain markets, with U.S. envoys meeting with Russia and Ukraine over the weekend and early reports indicating that the talks were productive but not conclusive. The next Crop Progress report will be released on Tuesday, followed by the September WASDE report on Friday, September 11. Corn has rallied over a dollar since the June 30 acreage report and ~80 cents since last month’s crop report. Last year’s September WASDE report cut the corn yield estimate to 186.7 bushels per acre from 188.8 bpa in August.
This year, private yield forecasts have helped create excitement about higher corn prices, but at the end of the day, it's about what the USDA says. There are many reasons for corn to continue to move higher heading into 2027, but next week has the potential to be volatile, especially if corn conditions improve on Tuesday, funds go risk-off pre-report, there’s a Black Sea export deal, or the USDA is less friendly on their estimates than trade expectations.
Contact me for short-dated option strategies to provide protection against any surprises leading up to and on Friday’s report.
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Hans Schmit
Broker, Pure Hedge Division
Direct: 312-765-7311
WALSH TRADING INC.
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